Luxury Property Market In New Zealand Seeing A Revival

After being stuck in recessionary doldrums, New Zealand’s wealthiest households are beginning to splash the cash again.

Latest figures show Kiwis have amassed $2.3 trillion in wealth, while previous estimates from the IRD say around half of it is held by the top 10% of households - with nearly a fifth held by the top 1% alone.

Those who cater to ultra-high-net-worth individuals tell the Sunday Star-Times that the wealth never went away, it has just been socially awkward to flaunt it.

“It’s a New Zealand thing - a lot have money but don’t want people knowing about it,” says High St tailor, Murray Crane.

“There’s this tall poppy syndrome, so people like to keep under the radar and that gets more pronounced during a difficult time, but they still have money.”

However, industry experts the Star-Times spoke to say economic greenshoots and lowering interest rates have improved optimism and spending among the wealthy.

Part of being rich is knowing how to retain that wealth, and that’s where the property market comes in.

Paul Sissons of NZ Sotheby's International Realty says the luxury real estate market isn’t as susceptible to the classic cycles, and at the moment it’s being fuelled by returning expats.

Sissons sold this year’s most valuable property, getting a price of $21,840,000 for a palatial five-bedroom home at Orakei’s 84 Paritai Drive. The mansion-lined road has long been associated with the uber-wealthy, prominently featuring in the The Real Housewives of Auckland.
In recent years its title of most valuable street has been challenged by Herne Bay, but Sissons says that’s just because Paritai properties are so tightly held that sales data doesn’t come up as frequently. He says Herne Bay is within walking distance of “the hustle and bustle” of Ponsonby, but Paritai’s residents prefer to hop in their helicopters.

“In Herne Bay there are a lot of properties with water views, but I don’t think you can beat the harbour view from Paritai, it’s just first-class.”